2015 Tax And Investment Planning Tips
There are a number of options when it comes to saving tax in India and keeping the investment aspect in mind as well. Everyone wants to save tax. For this, people plan each year and in doing so aim to reduce their tax outlay. In 2015 the government brought in a few schemes and changed old rules. This meant that the old order had to change.
Some of the ways in which Tax and Investment planning can go hand in hand in F.Y. – 2015-16 are:
Tax Planning – Family:
It would be better if a separate file for income tax is maintained for the spouse. There are many provisions where income is not clubbed in the hands of one spouse. These should be taken advantage of. This is possible since then 80 C deductions can be availed for both separately. Further, the 2015 budget raised the deduction under section 80 D for Medical expenses claim for an elder or senior citizen from 20,000 to 30,000 rupees. Even they should have separate tax filings which can be made possible by gifting them a part of one’s income.
Further, new tax files for married children should be there. This will create new entities and reduce taxation in the overall. Further, transactions which can cause income clubbing should be steered clear of. For children who are unmarried one can think of a separate tax file by giving a gift. No clubbing provisions shall be attracted.
Life Insurance Polices:
Investment in Life Insurance should not be affected by the deduction available under section 80 C. Hence, one should analyse if the entire family is adequately insured. If not then the same should be done. Further, a term loan for the sum of loan with respect to education, car and home is a good idea as well.
Planning for investments in Gold, silver and real estate in 2015:
One should perform a objective tally of total assets present whether mutual funds, FDs or even property. In order to avoid unnecessary tax hassles, one would be well advised to make real estate investments (buy and sell) at circle rates so as to avoid stamp valuations later. Property should be purchased from the respective funds of both wife and husband. This will allow both to share the tax benefits. The real estate market is set for high returns in the future with creation of over a 100 smart cities on the cards and upcoming schemes for housing.
Once the price of precious metals like gold and silver fall further as well as raw diamonds, small investments are advisable. Gold should ideally be bought in DEMAT form to avoid losses from resale value erosion of jewellery.